Direct Tax Collection: If Finance Minister Nirmala Sitharaman accepts the suggestion of economist Surjit Bhalla, then it will be a big hit for tax payers. Famous economist Surjit Bhalla said that India is not the richest country in the world.
Income Tax Collection: If you also pay Income Tax every year, then this news can make you happy. Yes, if Finance Minister Nirmala Sitharaman accepts the suggestion of renowned economist Surjit Bhalla, then it will be beneficial for tax payers. Famous economist Surjit Bhalla said that India is not the richest country in the world, but the tax collection here is very high and in such a situation, the income tax rate should be reduced from the current around 40 percent to 25 percent.
India’s economy is highly globalized
He told that it is necessary to reduce the tax rate to speed up the economic growth. Bhalla said, ‘We are the most globalized economy in the world. If you look at the tax structure in the country, the tax collection is high, even though we are not the richest economy in the world. He said that the tax collection of the state, central and local bodies is about 19 percent of the country’s gross domestic product (GDP).
Suggestion to increase the total tax rate to 25 percent
Surjit Bhalla also said that ‘we should move towards reducing it by 2 percent. As far as direct taxes are concerned, I think the total tax rate should not be more than 25 per cent. Right now it is around 40 percent including cess. Our corporate tax rate is 25 percent, this should be our income tax rate. At present, the maximum rate of income tax in the country is 39 percent.
Bhalla also said that instead of benefiting a select section of the society, there is a need to reduce taxes for all. Let us tell you that during the financial year 2022-23, India’s gross direct tax collection increased by more than 20 percent to Rs 19.68 lakh crore. After increasing the tax collection, the income tax payers were expecting a reduction in the tax slab in the budget. Later, the Finance Minister gave relief to the middle class by changing the new tax regime.
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